July 10, 2026 6:00am EDT
Consumers shouldn't expect prices to fall anytime soon, top economist warns
Conference Board's Dana Peterson says consumers are abandoning big-ticket items as housing, healthcare, insurance costs reshape spending
By Kristen Altus FOXBusiness
American consumers hoping for a swift end to years of inflationary pressures are facing a harsh reality check.
While recent relief at the gas pump offered a temporary reprieve, corporate supply chain strains and the lingering effects of global trade and geopolitical shocks are expected to keep prices elevated for the foreseeable future. According to The Conference Board Chief Economist Dana M. Peterson, everyday Americans will continue to feel the squeeze at the grocery store, with the Federal Reserve's 2% inflation target remaining out of reach until at least 2028.
"I think that consumers are going to continue to complain about elevated prices going forward because CEOs don't really have much of a choice… Inflation, including the two big shocks of tariffs and the war, probably peaked in the second quarter of this year, and we'll see inflation slowly decelerate over the course of this, but it's still gonna be high," Peterson told Fox News Digital.
"Headline [personal consumption expenditures] will probably peak in the third quarter of this year, again, as it's going to reflect those pass-through prices from the shock from the war," she added. "And of course, the [consumer price index] numbers are going to probably be higher because… they're just different measures. But nonetheless, we're not going to be anywhere close to 2% inflation by the end of this year, and probably not until sometime in 2028."
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https://www.foxbusiness.com/economy/consumers-shouldnt-expect-prices-fall-anytime-soon-top-economist-warns
